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Electronics
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Textiles and footwear
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Palm oil
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Rubber, furniture, shrimp, and other seafood products
- Emergency assessment mechanism: An interdepartmental task force is currently assessing the impact of tariffs by industry, with a focus on monitoring the export sector that accounts for 8.7% of GDP.
- Commitment to exchange rate stability: The central bank is using $139 billion in foreign exchange reserves to intervene in the market, maintaining the exchange rate of the Indonesian rupiah against the US dollar within the range of 15,200-15,600.
- Pathway for negotiations with the United States: A senior delegation has been dispatched to Washington to hold consultations on market access issues highlighted in the “2025 National Trade Assessment Report.”
- Accelerated domestic reforms: President Prabowo has instructed the cabinet to streamline 87 regulatory measures, with a focus on resolving non-tariff barriers such as export certification for agricultural products.
- ASEAN joint action: Coordination with Malaysia, the rotating chair, to establish a joint response mechanism among the ten ASEAN countries.
IV. How Chinese Enterprises Can Cope with the Challenges Brought to the Indonesian Market by Trump’s Tariff Policy
In the face of the challenges posed to the Indonesian market by Trump’s tariff policy, Chinese enterprises’ investments in Indonesia are also under considerable pressure. Under such circumstances, how Chinese enterprises can adjust their strategies, cope with challenges, and ensure their market share is an important issue that they need to address.
1. Adjusting Product Structure and Enhancing Value-Added
Chinese enterprises should transform to produce high-tech and high-value-added products, reducing their reliance on low-end products. By introducing advanced technologies and automated production lines, as well as promoting environmentally friendly and green products, they can enhance their market competitiveness.
2. Strengthening Localized Operations and Cooperation
Enhance cooperation with local Indonesian enterprises, promote joint ventures and local production to adapt to market demand and reduce tariff burdens. Through localized operations, enterprises can better adapt to policy changes and cultural differences.
3. Enhancing Supply Chain Management
Optimize the supply chain to increase flexibility and efficiency. By diversifying supply channels and adopting local production, enterprises can mitigate the impact of tariffs and ensure the stability of raw material supply.
Despite the trade pressures, Indonesia still has the opportunity to resolve the crisis through policy adjustments and market expansion. Chinese enterprises should seize these opportunities and, through flexible adaptation, consolidate and expand their market share.
